Automatic identification (“Auto-ID”) technology is used to help machines identify objects and capture data automatically. One of the earliest Auto-ID technologies was the bar code, which uses an alternating series of thin and wide bands that can be digitally interpreted by an optical scanner. This technology gained widespread adoption and near-universal acceptance with the designation of the Universal Product Code (“UPC”)—a standard governed by an industry-wide consortium called the Uniform Code Council. Formally adopted in 1973, the UPC is one of the most ubiquitous symbols present on virtually all manufactured goods today and has allowed for enormous efficiency in the tracking of goods through the manufacturing, supply, and distribution of various goods.
However, the bar code still requires manual interrogation by a human operator to scan each tagged object individually with a scanner. This is a line-of-sight process that has inherent limitations in speed and reliability. In addition, the UPC bar codes only allow for manufacturer and product type information to be encoded into the barcode, not the unique item's serial number. The bar code on one milk carton is the same as every other, making it impossible to count objects or individually check expiration dates.
Currently cartons are marked with barcode labels. These printed labels have over 40 “standard” layouts, can be mis-printed, smeared, mis-positioned and mis-labeled. In transit, these outer labels are often damaged or lost. Upon receipt, the pallets typically have to be broken-down and each case scanned into an enterprise system. Error rates at each point in the supply chain have been 4–18% thus creating a billion dollar inventory visibility problem. Only with RFID does the physical layer of actual goods automatically tie into software applications, to provide accurate tracking. Also, none of the information of these barcodes is protected or “hidden” from unauthorized readers, making counterfeiting and fraud easy and raising concerns about the loss of privacy.
The emerging RFID technology employs a radio frequency (“RF”) wireless link and ultra-small embedded computer chips, to overcome these barcode limitations. RFID technology allows physical objects to be identified and tracked via these wireless RFID tags, or “tags”. An RFID tag may function like a bar code that communicates to a reader automatically without needing manual line-of-sight scanning or singulation of the objects. Applied RFID technology promises to radically transform the retail, pharmaceutical, military, and transportation industries, as well as many product or document distribution methods.
An RFID system begins with a reader sending out electromagnetic signals to find a tag. When the radio wave hits the tag and the tag recognizes the reader's signal, the reader decodes the data programmed into the tag. The information is then passed to a server for processing. By tagging a variety of items, information about the nature and location of goods can be known instantly and automatically.
An RFID system may consist of two primary components, an RFID tag (“tag”) and a “tag reader”. The tag typically includes an IC chip and an antenna. The IC chip may include a digital decoder needed to execute the computer commands that the tag receives from the tag reader. The IC chip also includes a power supply circuit to extract and regulate power from the RF reader; a detector to decode signals from the reader; a transmitter to send data back to the reader; anti-collision protocol circuits; and at least enough EEPROM memory to store its EPC code.
Certain prior art RFID systems use reflected or “backscattered” radio frequency (RF) waves to transmit information from the tag to the reader. Since passive (Class-1 and Class-2) tags get all of their power from the reader signal, the tags are only powered when in the beam of the reader.
Semi-passive and active tags have a battery to provide power to the chip. This greatly increases read range, and the reliability of tag reads, because the tag doesn't need power from the reader. Class-3 tags only need a 10 mV signal from the reader in comparison to the 500 mV that a Class-1 tag needs to operate. This 2,500:1 reduction in power requirement permits Class-3 tags to operate out to a distance of 100 meters or more compared with a Class-1 range of only about 3 meters.
In 2003, the worldwide total RFID market size was $1.5 B in 2002 and has been growing rapidly. The total RFID market will grow to $7.25 B by the year 2008.
National government agencies, authorized financial institutions or their authorized agents are often responsible for creating, publishing, and authenticating financial instruments. A financial instruments is defined herein to include an electronic document or a hard copy document that is, represents, or is materially related to a financial record, money, a monetary value, an exchange value, currency, a payroll check, a personal check, a cashiers check, a certified check, a negotiable bond, a registered security, a credit card, a debit card, a credit note, a debit note, a promissory note, a title document and/or other suitable documents known in the art that contain or relate to a financial document, an ownership right or a title. The term financial instrument as further defined herein includes coupons, tickets, airline tickets, train tickets, bus tickets, rebates, rebate coupons, credits, credit notes, debits, debit notes, or other documents having financial relevance and issued by public or private persons, organizations, entities, associations, institutions, trusts or corporations. The term document is defined herein to include a financial instrument.
RFID circuit tags, also referred to herein as RFID circuits and RFID tags are presently manufactured and used to track a plethora of items and materials, from items of apparel to volumes of coal as stored by grade and quality. Alien Technology, mentioned as one exemplary manufacturer, provides a 915 MHz RFID tag with 64 bits of field programmable memory and 16 bits of CRC. Yet the prior art fails to suggest or anticipate the use of RFID tags with Electronic Product Codes for federal, state or local government to certify a financial instrument, a legal documents or another suitable document known in the art with a unique digital intelligent codes or the ability for third parties to use an intelligent Electronic Product Code to assure that a document is not counterfeit. More information about RPC codes may be found in published MIT reports and posted on websites like “EPCglobal” and “RFID Journal”.
It is an object of the present invention to provide new processes to protect against counterfeiting of financial instruments.